Medical costs continue to increase rapidly well above inflation. The increase is particularly acute in developing countries like India where medical costs increased by 15.3%. Thailand experienced increases by 12.5% while Indonesia saw increases at 13.1%. Europe as a whole also saw medical cost increases but it is considerably lower than the average 7.1%.

Private health insurance costs have also increased above the rates of inflation with cancer and diseases of the circulatory system as the main cost drivers. Increases in medical costs and insurance costs are punishing individuals so that poor health and risks continue to be prevalent globally.

A solution to avoid the increasing costs of insurance premiums is coverage provided by businesses like the American health system that preceded the implementation of the highly controversial Obamacare. Theoretically, businesses have an inherent interest in ensuring that their employees are healthy; however, the system also saw individuals being abandoned by the system when they are unemployed or if the employer decides to cut back on the benefits package. In most instances, businesses maximize their profits by minimizing the benefits of the health coverage.

In the industry report made by Mercer, poor health and risks continue to be prevalent globally because diet, stress, exercise and pollution are continuing to negatively affect the wellbeing of people. Mercer’s research results also highlighted the fact the cancer is becoming a considerable burden among the Latin American and Asian insurers.

Diseases related to the circulatory system are prevalent in the Middle East and Africa but not in Europe. Gastrointestinal disease which has little incidence in other regions is quite rampant in Asia. These diseases and illnesses have a high impact on medical costs as well as the amount of premiums for coverage. Insurers therefore have to double their efforts to manage the spirally healthcare plan costs.

Medical costs can be very expensive particularly if long term care is needed. Coverage through health insurance in Thailand can greatly relieve the financial burden on the family. Health insurance provides families with the peace of mind that there is a safeguard against the unexpected costs of medical care. The family need not suffer from the financial strain and stress of paying for extended hospital care.